Binance Chain Burns $595 Million Worth of BNB
- Binance burned 1,099,888 BNB, reducing the total supply of the token to 169,423,937 BNB.
- This is the highest-ever burn in terms of dollar-value, as BNB has seen its price increase 1,581% during Q1 2021.
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According to the official announcement from Binance’s CEO Changpeng Zhao, the exchange burned a total of 1,099,888 BNB, reducing the total supply of the token to 169,432,937 BNB. The “burning” process permanently removes tokens from circulation by sending them to a frozen private address without a private key.
When Binance launched BNB in 2017, it set a target of burning 100 million BNB tokens—half of its total supply. This is set to increase the scarcity, and therefore the price of the token, which serves as a native cryptocurrency for the huge Binance ecosystem.
The exchange’s token saw its price increase 16.8x in Q1 2021, rising from $38 in January to as high as $639 at the beginning of April. In an overview of the recent burn, Zhao said that several factors contributed to BNB’s growth, with the popularity of the Binance Smart Chain (BSC) being among the most important ones.
BSC processed just under 5 million daily transactions at the beginning of April and recorded a total unique address count of 64 million. The exchange’s centralized blockchain platform currently hosts over 450 projects and brings in an average of 105,000 daily active wallets—more than a quarter of the total number of active wallets in the entire DeFi industry.
Last quarter, Binance itself recorded growth of 260% and 346% in traded volume and number of users, respectively. The company also released Binance Pay, a feature that enables users to pay, send, and receive cryptocurrency payments without fees.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.